Do anti-takeover devices affect the takeover likelihood or the takeover premium?

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http://hdl.handle.net/10138/160649

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Holmén , M , Nivorozhkin , E & Rana , R 2014 , ' Do anti-takeover devices affect the takeover likelihood or the takeover premium? ' , The European Journal of Finance , vol. 20 , no. 4 , pp. 319-340 . https://doi.org/10.1080/1351847X.2012.703141

Title: Do anti-takeover devices affect the takeover likelihood or the takeover premium?
Author: Holmén, Martin; Nivorozhkin, Eugene; Rana, Rakesh
Contributor: Hanken School of Economics, Finance, Helsinki
Belongs to series: The European Journal of Finance
ISSN: 1351-847X
Abstract: In this paper we use Heckman selection models to analyse the relation between the likelihood of the firm becoming a takeover target, the takeover premium, and the use of anti-takeover devices. Ordinary least squares regressions suggest that anti-takeover devices, especially dual class shares, are associated with a higher takeover premium. However, we also document that anti-takeover devices reduce the likelihood that the firm will be taken over. When we control for the fact that takeover targets are selected, we do not find a significant relation between the takeover premium and dual class shares. Hence, our results suggest that the takeover premium is indeed influenced by private information about the likelihood of takeover.
URI: http://hdl.handle.net/10138/160649
Date: 2014
Subject: 511 Economics
Finansiell ekonomi
KOTA2012
KOTA2012
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